Economically sensitive bank stocks slide after data signals slowing labor market

** Economically sensitive bank stocks (.SPXBK) tumble 2.5% amid a selloff on the Wall Street after data showed U.S. employment growth slowed more than expected in July

** Major U.S. banks JPMorgan Chase JPM, Wells Fargo WFC, Goldman Sachs GS, Morgan Stanley MS, Citigroup C, and Bank of America BAC shed between 1.8% and 2.5%

** A deterioration in labor market conditions has put a September interest rate cut by the Federal Reserve back on the table

** When interest rates fall, banks earn less on loans relative to what they pay on deposits, narrowing their net interest margins

** Businesses and consumers also borrow less, reducing banks' interest income in a slowing economy

** Nasdaq regional banking index KKRX sheds 2.7%

** YTD, SPXBK up 12.6% versus 6.1% slide in KRX